Bessent Rules Out Intervention to Support Yen, Praises "Strong Dollar"

U.S. Treasury Secretary Scott Bessent dismissed speculation that Washington might intervene in foreign exchange markets to support the Japanese yen, reaffirming the administration’s commitment to a long-term “strong dollar” policy.

Speaking in an interview with CNBC on Wednesday, Bessent said the U.S. would “absolutely not” intervene to boost the yen. “We simply adhere to a strong dollar policy,” he stated, emphasizing that sound domestic policies would naturally attract capital flows.

Following Bessent’s remarks, the yen fell about 0.7% to 153.34 against the dollar as of 10:37 a.m. New York time. Speculation had risen last week that the U.S. might join Japan in selling dollars to support the yen, after reports of so-called “interest rate testing” conducted by the New York Federal Reserve on behalf of the Treasury.

Tokyo has pledged to coordinate with Washington “as necessary” regarding yen policy moves.

Bessent’s comments came a day after President Donald Trump expressed comfort with the dollar’s recent decline, citing the strength of the U.S. economy. “No, I think it’s great,” Trump told reporters. “Look at the business we’re doing. The dollar is in excellent shape.”

Trump’s remarks had contributed to a 1.1% drop in the Bloomberg Dollar Spot Index on Tuesday. Following Bessent’s statements, the index recovered 0.5% in Wednesday trading.

Bessent also noted that a reduction in the U.S. trade deficit should naturally support the dollar over time. He added that the combination of Trump’s administration, regulatory clarity, and legislative measures is creating an environment “ideal for business,” with confidence in taxation, regulation, and energy policy.